Hotel and Resaurant Association of the Philippines

GENERAL POLICIES AND OPERATING MECHANICS
HRAP - NAIA HOTEL RESERVATION SYSTEM & COUNTER

HRAP HOTEL RESERVATION SYSTEM /COUNTER

HRAP shall set up the Counter at the NAIA, which will be located at the Arrival Lobby beside the Department of Tourism Information Counter, and with an estimated area of 6.68 square meters.

The Counter shall be shared by HRAP with the Association of Five Star Hotels Airport Representatives of the Philippines (hereinafter referred to as "AFSHARP"), an affiliate member of the HRAP which will assist arriving passengers with previous bookings.

SERVICES TO BE RENDERED BY HRAP

HRAP shall assist arriving passengers in obtaining bookings in hotels in Metro Manila and in other places in the Philippines. Assistance will be made to passengers who are without previous bookings. Those with previous bookings shall be referred to the AFSHARP, who will be sharing the Counter. This will involve, among others, the offer by HRAP personnel assigned to the Counter of the Hotel Rate Book to the passengers who will be making inquiries / issuing Booking Vouchers to passengers at hotels of their choice.

HRAP shall also represent Department of Tourism (hereinafter referred to as "DOT") accredited hotels, who are non-members of the HRAP; provided, that these establishments execute a similar agreement with HRAP and agree to comply with the rates for non-members and the General Policies and Operating Mechanics referred to in Section 3 (F) below.

OBLIGATION OF HRAP

A. HRAP shall supervise the construction of the Counter and the installation of the equipment needed for its operation. The Counter shall be movable and easily transferable, as required by airport management. The Counter shall include:

Main Counter with divider / cabinets
Back cabinets for office equipment
3 part signages which will be lighted
Location map which will be lighted
Office fixtures with chairs and telephones /beepers/radios

B. HRAP shall sign a contract of lease with, or secure a permit to occupy the premises or the Counter from the NAIA management and shall pay the required monthly rental fees.

C. HRAP shall hire, supervise and train the personnel who will man the HRAP Counter. These personnel will include one supervisor, our desk personnel who will be working on shifts, and one messenger or utility man. HRAP shall hire additional personnel as may be necessary for the efficient accomplishment of the purpose for which the Counter is to be set up.

HRAP shall collate and make available the Hotel Rate Book for the passengers who will be inquiring from the Counter.

HRAP shall also print and implement the approved voucher system, as agreed upon by the parties. Pending computerization of the system, HRAP will operate the voucher system manually. HRAP shall also assist in monitoring the payment and collection of the fees, including the monitoring and reconciliation of the monthly billings with the HRAP members and the non-HRAP members who subscribe to the services referred to in this agreement.

HRAP shall spearhead the formation of the working committee (hereinafter referred to as the HRAP-DOT-NAIA "Committee"). The Committee shall be composed of DOT & HRAP representatives as co-chairmen and the representatives of the NAIA management participating hotels and officers of the AFSHARP as members. The Committee shall take charge of the formulation of the procedures for the operation (hereinafter referred to as the "General Policies and Operating mechanics") of the Counter. Revisions in the General Policies and Operating mechanics shall be annually reviewed by the Committee.

OBLIGATIONS OF THE SUBSCRIBER

The Subscriber shall provide HRAP, for inclusion in the Hotel Rate Book, with a schedule of their basic rates and all-inclusive rates, with appropriate rates for high and low seasons.

The all inclusive rates shall include the basic rate, which rate shall be the best rate possible which may be quoted by the establishment to anyone in NAIA, and the taxes (including VAT and local tax, if any) and charges (including service charges) which will accrue as a result of the availment of the service.

All rates shall be quoted in Philippine peso and the Subscriber shall indicate their usual US$ Dollar guiding rate.

The Subscriber shall appoint a representative in the Committee who will participate in the formulation of the General Policies and Operating Mechanics and any amendments thereto.

For the services of HRAP described in Paragraph 2 above; the Subscriber shall pay to HRAP

A subscription fee of P10,000 per year (P15,000 per year for non-HRAP establishment) if it is a 3 star; 4 star or 5 star hotel with designated airport representatives having access to the Counter. Otherwise, it shall pay a yearly subscription fee of P5,000 for members / P7,500 for non-HRAP members. This Subscription Fee shall be paid upon signing by the Subscriber of this Agreement, with the subsequent payments due on the first week of the fiscal year of the Subscriber.

In addition, an amount equivalent to fifteen percent (15%) of the actual bookings made through the Counter. This shall be based on the basic rate for the total room nights realized. This fee shall be paid on a monthly basis, payable the end of each calendar month.

OBLIGATIONS OF HRAP / SUBSCRIBERS

HRAP and the Subscribers shall establish with the DOT and the NAIA management a working arrangement for the efficient functioning and operation of the Counter. This arrangement shall include the accreditation of full-time, legitimate airport representatives who will be monitored quarterly, the assistance of the DOT in referring bookings from passengers, and the establishment of such other guidelines relative to the operation of the Counter.

HRAP and all Subscribers shall endeavor to establish accredited harmonious relations with all authorized counter representatives at the NAIA.

A Code of Discipline for all airport representatives shall be enforced. All erring personnel shall be reported to DOT - for proper management sanction.

Any favoritism should be discouraged and staff caught favoring any specific hotel must be discharged at once. Establishments actively trying to influence the counter staff should also be warned and eventually expelled if they do not conform.

TERM

HRAP and each of the participating hotels will execute an agreement substantially in the form attached hereto as Exhibit 1, which agreement will be subject to the continuance of the lease agreement between HRAP and NAIA management.